XLK is neutral with a negative outlook; the decline is leveling off and the risk of a full downgrade is too high due to its market cap, so the position is neutral slightly underweight.

And then we come to stocks to stock sectors. And my oh my, for the first time since a long period, XLK is not the only sector on the right hand side. Has been joined by health care and financials, XLV and XLF.

And then there's technology and there are many reasons to put technology on an underperformance recommendation. I While I was preparing this video, I I thought about putting energy on a green and technology on a red.

And I can make a very good case for both situations. However, market capitalization is a factor and technology as you all know has the highest market capitalization. So the impact of technology on the market is huge.

If you get this wrong, you will your portfolio will be wrong. So I find it hard with technology still detached from the other sectors inside the weakening quadrant, but as you can see tail is already leveling off.

It's it you know the the speed of the decline is leveling off. And with this

I While I was preparing this video, I I thought about putting energy on a green and technology on a red. And I can make a very good case for both situations. However, market capitalization is a factor and technology as you all know has the highest market capitalization.

So the impact of technology on the market is huge. If you get this wrong, you will your portfolio will be wrong.

So I find it hard with technology still detached from the other sectors inside the weakening quadrant, but as you can see tail is already leveling off. It's it you know the the speed of the decline is leveling off.

And with this move here this space here there's plenty of room for XLK to turn back up towards the leading quadrant. I'm not sure whether it will do that but for me personally I think the risk of totally downgrading technology like an underperformer is too big.

So I moved it to an orange box so from green to orange which means it's kind of neutral with a negative outlook.

So still a decent So what what would that mean in terms of portfolio management? I probably think you know technology now at like 36% I would still keep 33 34 maybe 30% in technology stocks.

I would not feel comfortable under waiting technology let alone moving the weight to zero in a portfolio. So that's the rationale for putting technology on an orange box with a like neutral negative outlook.

And then here is technology. As I said, um this is not a good chart. This is not looking very good. This is could even be like an engulfing candle. Um the fact that the RS line is peaking, and if we break below this support level here, there is more downside to come, more relative downside to come.

But, there is room. The RS ratio line is still at a very high level. So, even if this breaks, there's plenty of room for RS ratio to move lower without breaking below 100. And here also, there is definitely some support here around 168, let's say 170.

And I know these are big move bigger moves. But, as I said, this sector is so important that it's it's almost unless you're a 100% sure that this sector is going to tank and going to go down hard, rapidly, it is very dangerous to get out of technology altogether.

So, right now, I am proposing a kind of neutral slightly underweight position for the technology sector. I I I am not comfortable putting this at a 100% underperformer.